BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Periodical manner
|
|
|
Chronological order
|
|
|
Summarised manner
|
|
|
Systematic order
|
Detailed explanation-1: -Yes, ledger record transactions in chronological order because they are recorded from journal entry in which transactions are written in the order they entered . i.e chronological order.
Detailed explanation-2: -A journal, commonly known as the Book of Original Entry or the Day Book is a book of transactions recorded in a chronological order. Usually, transactions are recorded in a journal before they are recorded in a ledger account.
Detailed explanation-3: -Journals and ledgers are where the financial transactions are recorded. The journal, also known as the book of first entry, records transactions in chronological order. It’s prepared from the current transactions and does not start with an opening balance.
Detailed explanation-4: -A journal, also known as Books of Original Entry, keeps records of business transactions in a systematic order. Transactions are recorded in the journal in chronological order, i.e. as they occur; one after the other.
Detailed explanation-5: -The process of recording the transactions in a journal is called as journalizing.